The proposed "Rhode Island Kratom Act" establishes a comprehensive regulatory framework for the sale and distribution of kratom and kratom products within the state. It defines key terms related to kratom, including "distributor," "retailer," and "manufacturer," and sets forth licensing requirements for all parties involved in the kratom business. The Act prohibits the sale of kratom products that are harmful or unsafe, including those appealing to individuals under 21, and mandates child-resistant packaging and strict labeling guidelines that warn consumers of potential health risks. Additionally, the bill imposes age restrictions, requiring retailers to verify the age of purchasers and store kratom products behind sales counters. Violations of these regulations can result in fines, license suspensions, or revocations.

The legislation also introduces new taxation measures, including a 15% sales tax on kratom products, with proceeds directed to the state’s general fund. It establishes a "kratom administration account" within the Department of Health to manage funds from penalties and fees associated with kratom regulation. The bill includes provisions for compliance inspections, record-keeping requirements, and penalties for non-compliance, including criminal charges for tax evasion. Key insertions in the bill include protections for witnesses from self-incrimination and the authority for the tax administrator to enforce compliance through court orders. The Act is set to take effect on April 1, 2026, and aims to enhance public safety while regulating the kratom market effectively.

Statutes affected:
5565: 21-28-2.03